AVIC XAC(SZ:000768)2022-12-08 05:16Group 1: Company Structure and Reform - The company aims to establish a modern enterprise system to compete internationally, necessitating a complete reform of its organizational structure and management model [3] - The new organizational structure is "Headquarters + Business Units + 3C," which enhances internal scientific division of labor and promotes efficient resource management [4] - The reform will lead to the dissolution of traditional subsidiaries like "Xifei" and "Shanfei," transitioning them into branches under the new structure [5] Group 2: Challenges and Pressures - The company faces high expectations from the parent group as the first publicly listed aviation company, leading to significant pressure during the reform process [5] - There is a lack of understanding and supporting mechanisms for the reform, causing difficulties for implementers [6] - The absence of a ready-made template for reform poses additional challenges, as the company navigates new policies without clear implementation guidelines [6] Group 3: Benefits and Motivations for Reform - The primary motivation for reform is the necessity to change the outdated systems inherited from decades of traditional practices [6] - By integrating resources and adopting a more professional approach, the company aims to improve efficiency and reduce operational costs [7] - The introduction of mixed-ownership models and leveraging social resources are seen as potential avenues for growth and modernization [7] Group 4: Employee Concerns and Cultural Shift - Employees may experience psychological impacts due to the disappearance of long-standing units, necessitating careful management of their concerns [8] - The company emphasizes the importance of cultural transformation alongside structural changes to ensure employee buy-in and understanding of the reform's objectives [9] - Continuous communication and cultural reinforcement are essential to help employees recognize their roles in the new organizational framework [9] Group 5: Progress and Future Goals - Significant progress has been made in integrating research and development resources, establishing a unified R&D center [10] - The company has also achieved internal professional integration and is working on improving its operational standards and internal control systems [10] - The goal is to evolve into a modern enterprise that aligns with the third industrial revolution, ensuring that reforms are gradual and well-founded [10]